The Adani Group's entry into Israel through its strategic acquisition of the Haifa port will turn this northern coastal Israeli city into a strong and exciting Mediterranean hub, the city's mayor said on Tuesday.

A consortium of Adani Ports and Special Economic Zone (APSEZ) and Israel's Gadot Group won the tender in July last year to privatise the Port of Haifa for a staggering USD 1.18 billion.

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It completed the process of purchase on January 11 this year, following which upgradation work has been going on in full swing at the port. The Indian partner in the consortium holds 70 percent of the stake while its Israeli partner Gadot has 30 percent.

Haifa Mayor Dr Einat Kalish-Rotem said the development would help realise the long-term goals of the city, turning it into a strong, exciting and a real sea-city in the Mediterranean.

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

"I congratulate the Adani Group and its Israeli partner Gadot - welcome to the city of Haifa. Your entry into the Port of Haifa awakens the age-old dream of all Haifaites to have the privilege of seeing our beautiful city connected to the sea after almost a hundred years of disconnect," Kalish-Rotem told PTI.

She pointed out that the plan submitted by Adani-Gadot consortium to the investors includes the construction of real estate infrastructure for business and tourism in accordance with the national master plan.

"We welcome this programme and say we have a common vision for which we will work in full cooperation," Kalish-Rotem said.

"The relationship between Haifa and the port, or between the port and Haifa, is entering a new era, which can decide Haifa's position and strengthen it as a leading city in the Mediterranean - from a touristic, economic, cultural and environmental point of view," she asserted.

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The mayor said the port will offer a permanent solution to the removal of the underground railways and tunnels on which the city administration has been working for a decade.

"Plans for the renewal of the port district and the entire heart of the historic city, combined with other far-reaching initiatives to strengthen the economy in the fields of high-tech, culture and more, the port becomes a complementary and critical pillar in the realisation of the vision, which will turn Haifa into a strong, exciting and real sea-city," she said.

The mayor of Haifa will also participate in a ceremony later on Tuesday which will be attended by Prime Minister Benjamin Netanyahu, Minister of Transport and Road Safety Miri Regev, and Founder and Chairman of the Adani Group, Gautam Adani.

The successful entry of the Adani Group in Israel through its acquisition of the Haifa port is being seen as a "strategic purchase". It is probably the biggest foreign investment in this country in any sector.

Adani’s company operates 13 sea terminals in India and controls 24 percent of India’s maritime commerce.

It has no holdings in the West, so its entry into Israel is a signal for increased maritime traffic between Asia and Europe, and the major Asian players’ need for a hub in the Mediterranean.

(Edited by : Soham Shetty)